Technology, Cooperation And Stock Market Value : An Event Study Of New Partnership Announcements In The Biotechnology And Pharmaceutical Industries
Résumé
We use the event study methodology to investigate the share price responses to the formation of 281 partnerships in
the biotechnology/pharmaceutical industry over the years 1995–2000. The average stock price response is positive,
more so than in previous empirical works, which could be interpreted as evidence that interfirm collaboration is
particularly valuable in high-technology industries. Research and development (R&D) partnerships also generate
higher abnormal returns (relative to production or marketing agreements). On average, smaller firms in the partnership
seem to appropriate a very significant share of the cooperative surplus, especially when they receive large technology
payments or when the partnership is concluded in the R&D stage. On the other hand, partnership announcements of
more profitable firms tend to be associated with higher abnormal returns.
the biotechnology/pharmaceutical industry over the years 1995–2000. The average stock price response is positive,
more so than in previous empirical works, which could be interpreted as evidence that interfirm collaboration is
particularly valuable in high-technology industries. Research and development (R&D) partnerships also generate
higher abnormal returns (relative to production or marketing agreements). On average, smaller firms in the partnership
seem to appropriate a very significant share of the cooperative surplus, especially when they receive large technology
payments or when the partnership is concluded in the R&D stage. On the other hand, partnership announcements of
more profitable firms tend to be associated with higher abnormal returns.
Domaines
Economies et finances
Loading...